Daily Update 15 September, 2021

Global Markets Update                                                  

  • U.S. equity markets closed lower overnight, with the Dow Jones down -0.8%, S&P 500 down -0.6% and NASDAQ declining -0.4%. Prices paid by U.S. consumers rose in August by less than forecast with CPI increasing +0.3% MoM (+5.3% yoy), the smallest advance in seven months, reflecting declines in the prices of used cars, airfares and auto insurance, snapping a string of hefty gains and suggesting that some of the upward pressure on inflation is beginning to wane.
  • Long-dated U.S. treasury yields were lower, with the 2-Yr yield at 0.207% and the 10-Yr yield at 1.274%.
  • European markets. European equity markets closed mixed overnight, with the Stoxx Europe 600 flat, German DAX up +0.1% and U.K. FTSE 100 closing -0.5% lower.
  • Asian markets. Asian equity markets closed mixed overnight, with the Hang Seng down -1.2%, after casino stocks dropped as Macau laid plans to step up scrutiny of operators and increase local ownership, signaling tighter control amid Beijing’s efforts to clamp down on money laundering and currency outflows. The Shanghai Composite declined -1.4%, after SEC Chairman Gary Gensler announced that Chinese companies that do not comply with laws requiring inspection of their auditing process by U.S. regulators will be forced off American stock exchanges starting in 2024. Nikkei 225 gained +0.7%, surpassing this year’s peak seen in February and closing at the highest level since August 1990 after government announced that over half of the population is now fully vaccinated, and KOSPI closed +0.7% higher.
  • WTI oil is trading at US$70.43 a barrel. Iron ore price is at US$135.42 per ton. Spot gold is trading at US$1,805 per oz.

ASX Market Update

  • ASX performance. The ASX 200 closed +0.16% higher yesterday, after RBA Chief Philip Lowe reiterated that conditions for a rate rise are not expected before 2024.
  • Brambles Ltd (BXB) declined -8.3%, after forecasting FY22 underlying profit growth of 1-2% and revenue growth of 5-6% over pcp. Woodside Petroleum Ltd (WPL) was up +6.2%, after completing drilling at its first oil well at Sangomar in Senegal.
  • Today’s trading. In Australia, we get consumer confidence data.